>> good morning. this is "bloomberg: daybreak europe." these are the stories that set oragenda. the u.s. provides land reminds with biden's approval in missile

launches. recent tech heavy market stand by for nvidia. will the chip powerhouse continue its remarkable a.i. fuel run or will the downside catch up? donald trump's search for a secretary is heating up. ♪ >> good morning, everybody. i'm kriti gupta. we start off with a quick check of the markets. the future's picture is maybe a little bit of a diversion. risk sentiment souring in the

asian market. futures higher than 4.10. and the futsi is underperforming. and all eyes on the nvidia story. in the meantime maybe a little bit of autopilot. let's get a quick check on the asset story. here's the geo politics may show up just a little bit more. this idea that 4.5 may be the number for the yields, and again anything can happen given the geo political whip. euro dollar, 1.05 just on the cusp of 1.06. that race down to parity has slowed. a similar story in cable. 1.26. but i would argue in the currency picture all eyes are on dollar yen. some calls 1.60 and 162. and the 1.55 handle.

we are also keeping one eye on what happens out of the u.s. that seems to be what's driving the japanese bond story the most. 1.5523. what's happening in the war in ukraine. russia's war is escalating as the conflict passes its 1,000th day. ukraine took advantage of the long range missile capabilities and stuck a military base on russia. moscow stepped up the threat of a nuclear threats. let's bring in oliver crook. in addition to the long range missiles now getting approval out of the united states for land reminds as well walk us through the strategy. walk us through the strikes by ukraine. >> yeah, kriti, a lot of news to get through yesterday and a lot of very considerable and potentially very influential news when you hear about russia with the nuclear doctrine.

what we got yesterday was basically the first strikes of these atacms missiles. this was expected after biden approved this on the g-20 meeting. what was significant is they struck in the briansk region. these permissions were for use within the kurk region. that's why people were paying attention. putin signed a new nuclear doctrine. this i will read verbatim tim because it's important. russia will also view and attack on its territory by a nonnuclear state i.e. ukraine that is supported by a nuclear power in this case the united states as a joint assault. they're not going to be drawing the distinction and those would aflow the kremlin's new doctrine a nuclear retaliation. piecing this all together was a challenge yesterday and for the markets you saw that risk

aversion rip through the markets but there's a lot of ambiguity with it. groping through the darkness of sort of war trying to find the red lines. it was a concern that this was a meaningful step forward. though the russians were downplaying the damage that these atacms did. kriti: the idea that maybe some tough language, maybe more bark than bite. walk us through the position of some of the other allies around ukraine do they share the same view as the united states when it comes to the long range missile attacks? >> this is where things have gotten interesting from the german perspective because the german policy from the beginning is they do not want to be those who sort of escalate the situation. they do not want to be the main protagonist in terms of the military supply. so it's always the united states that went first with saw this with the tank question. only once the united states and joe biden said that they would send the thanks that then the

germans said we will do that. that's exactly the pattern we have seen throughout this entire war over the last two years. they ended over the last couple of days with the chancellor saying that he is not comfortable turn iring the ukrainians with these missiles. he's not the majority within germany. you have the candidate who is potentially the next chancellor. this is also across the political spectrum. i spoke to a lawmaker yesterday just yesterday about what the germans should do. have a listen to what he had to say. >> the majority of current members of parliament in germany and even part of the german government except chancellor shultz are supportive of the delivery of the missiles. we need to accept that firmness

is a reality by mr. putin. and so i think we should be. >> so as we countdown to the election on february 23rd, this is actually potentially one of the last orders of businesses that could get between the bundestag despite the chancellor objections. >> this is something we're going keep a close eye on. germany is another ally that we will keep an eye on. we thank you so much. we're going to have an exclusive interview on this very going to. the ukrainian ambassador to the e.u. will join me in just about 30 minutes time. coming up at 6:30, 7:40 a.m. right here in brussels. s that crucial conversation as we talk about what escalation looks like. it's something the markets have reacted in the last 24 hours. will that narrative continue? in the meantime we have avril. walk us through the asian market

action. avril: we are seeing asian markets cautious today but maybe not so much because of developments between russia and ukraine but more the anticipation of what we're going to get from nvidia it's interesting to see how the c.s.i.300 are not that bad. and healthcare stops are helping to cap declines where we're seeing the decline is out of taiwan. and this is of course, a market that could really use a boost from nvidia in the sense that it's been battled by geo political concerns for the month of november. we've been seeing those outflows accelerating. s that market that also also run up about 20% in dollar terms. so traders might have been choosing to lock in pro fits. we are seeing some reaction in the japanese currency in terms of a big -- of safe haven demand but even that has erased -- we're seeing the yen at roughly the one-week highs against the

green back at the moment. and so so this also speaks to how the currency has lost a bit of the credentials as a haven currency. let's take a look at some of the stocks in focus. taiwan is under degree performing. but a couple of other stocks i wanted to highlight. these two in japan that climbed double digits. this is the owner of the convenience convenient store chain that today we're hearing from the founding family. it could take the firm private as soon as february to fend off canadian firms take over approach. after the activists investor own as major stake and it could come through some important proposals. why i'm highlighting these companys in japan is because there seems to be a shift among investor there is away from the export names in the country because they tend to do badly when the yen gains. to focus more on these individual firms. so the activism as well as the deal-making that's really what is shaking up japan markets.

take a look at this chart because as we see dollar yen and it looks like there's a path higher especially if you don't see any consensus about december rate hike from the b.o.j. that raise it is speculation about when we see intervention from japanese minorities and they're making the point that we're not going to see that any time soon because if you look at the yen on a trade weighted basis it's far away from the july lows so it perhaps delays in stepping in from japanese authorities, guys? >> it's an interesting one. we talk about the currency impacting but the stock market impacting not mention the geo politics. that's shaking up the assets yesterday. as we weigh in these geo politics and weigh this asset alocation you can't have that talk without talking about nvidia. that's the anticipation. a little bit of flat trading all

ahead of their release of quarterly warnings what will it say about the state of the a.i. boom? bloomberg's riley titel joining us. walk us through the in nvidia story. valerie: the anticipation is high for the results to come out around 9:00 p.m. u.k. time. if we look at what's been pricing the volatility market these are the last market catalysts for the year even bigger for the fed meeting. that being said there's a lot of optimism, kriti. we saw a 50% jump. that's the biggest jump in over two months on very little news. all optimism heading into the earnings results released later tonight if we come pair the nvidia stock to the wider chip market, a lot of pressure is on this stock. it is trading very close to all. time highs. you can compare that to the wider chip market which is down

30% since the peak in july. it's not just this share price but with the e.p.s. goliath nvidia can boost the market with. if you check out the e.p.s. growth in the wider chip market if you strip out nvidia, the e.p.s. growth for the chip market is very minute all the. 3.8%. you add nvidia in. it's nearly 32%. for the wired s & p500, nvidia is going to drive a quarter oil a lot of pressure on the results tonight. i want to flip on and see how it can be a catalyst for wider market. we have seensome bullish nbc the equity market dissipate. the bullish thanks came after the u.s. election result has been fading. it could be the nvidia stock, the nvidia results tonight that guide us in the next direction for the wired equity market. -- wider equity mark. kriti: what is the rate there? you talked about it there some

of the chip stocks. valerie titell. i'm sure it will be the top line for today's trade. today feels like the marks are still searching for maybe what's happening in present trump's cab net president-elect donald trump serged for a secretary. he scheduled interviews with former fed governor kevin worsh and mark rowan. let's get more details on some of his picks and where it's going. walk us through it. how much of that is a signal of president-elect's policy direction? >> well, they fall exactly in line with president trump's stated policies at least so far. you know, the person who is going to be at the head -- who's going to be the treasury secretary will have to enforce a lot of trump eats policies as it -- trump's policies as it comes to economic policies.

he'll be working with folks on wall street. this is a very high level position. one person was taken out of the running so far and instead was named commerce secretary and that's howard lutnik who was named to that position. he will be responsible for things like tariffs and what we know about him so far is that he is a china hawk right in line with marco rubio and announcements like that so he's spoken before at trump rallies. he said that tariffs are the way to go. he's quite skeptical of clean technology. both of these position, at least commerce -- whew we've got one position out of the way. the treasury secretary is an open question. there's about seven or so names that we've heard for that one. kriti: it's fascinating that we kept expecting to get closer and cat yeah to your point we're

getter farther and farther on what that secretary pick could look like and who it could be not to mention the policy di de situations that it could follow. and how the markets react to it. i don't know if it's bullish or bearish. yacht giving us the breakdown on what's going on in the states. kriti: a couple of other things. you're going to get you u.k. c.p.i. numbers. the bets around the b.o.e. very much in focus. we're looking at cable about 126, shy of 127. that volatile till likely to show up in about 45 minutes time in the u.k. time 9:00 a.m. in brussels you get the south african c.p.i. that carry trade that they ran very much again in focus as we look for these spots of yields. this data point might actually reflect that. you have to fast forward to 9:20 p.m. u.k. time. it's about 10:20 p.m. right here in brussels. nvidia earnings, this could be the major market mover as we

await what's going won the treasury secretary pick over in the united states. a lot to digest the next 24 hours. but coming up next, we go live to hong kong where pro democracy activist jimmy lie has taken the stand to testify for the first time in his landmark national security trial. we're going to get more on that next. stick with us. this is bloomberg.

♪ kriti: welcome back to bloomberg "daybreak." jimmy live has taken the stand to defend himself against national security charges in a case being closely watched in beijing and the west. our china correspondent min min lo has joined us. a pleasure to have you on the program this morning. walk us through what jimmy lai has said. >> good morning, kriti. jimmy lai came into court looking visibly thinner although he appeared to be in good spirits as he was led in by the police. he began giving his testimony. a couple of things that stood out to me. his remarks appeared to be calibrated to rebuff any allegations that he's a political advocate.

he said he had never allowed his staff on his newspaper to mention that his ties with foreign dig na tears also under scrutiny including his former enter abcs with the former president of taiwan former u.s. vice president mike pens for example and jimmy lai said that he did ask mike pens to show support -- pence to show support. but it would be far beyond him to tell him what to do. he tried to pass it as innocuous. he denied to pay anybody for influence on hong kong. he said he made donations to religion organizations. and he did not advocate international sanctions between tween hong kong and china. he's charged with one count publishing seditious newspaper to get people to go out and protest against proposed

extradition bill in 2019. he also mentioned why he started apple daley he said it reflects the core values of hong kong which he said include freedom. freedom of democracy. free demeanor of speech. freedom of assembly. the pursuit of democracy and rule of law. kriti: this is a fascinating time not just for asia and the watchers and beijing but in europe where you have seen the prime minister actually comment on this. there have been four british since jimmy lai has been in prison, he's the first to bring it up not only on the international stage but with xi jinping himself. walk us through the international reaction. >> as you said, he raised the jimmy lai's deteriorating health in brazil. and in this case is coming hot on the heels of the activists.

that drew condemnation from the u.s. and australia. you have the european parliament calling for the immediate and unconditional release of jimmy lai. and beijing had responded to some of these western criticisms saying they're trembling on the spirit of the rule of law and calling other companies not to interfere in their affairs. not only jimmy lai is denied bail he's being tried by three judges. he was denied hiring the preferred lawyer of his choice because the top british lawyer was barred from representing him after they issued the transportation confirming that the power to bar judges have the such cases lie with the chief executive and the national security committee. so a lot of pedia attention on this case all around. even donald trump is pledging to secure the release of jimmy lai

as well. kriti: a fascinating conversation when we know tensions between two world's largest economies are in focus. min min, we thank you so much. there's plenty more coming after the break. stick with us. this is bloomberg

♪ kriti: welcome back to bloomberg daybreak europe. let's get to some stories making news around the room. a key ally who is tipped become the next u.s. ambassador has told the podcast that the u.k. should be prepared to use nigel farage as a bridge head to working with the next u.s. president. how to quinn an election broadcast, peter handleson said

that the u.s. should kick into touch a burgeoning feud with the billionaire elon musk. the starship has achieved new goals during six major test launch but the company scrapped plans to catch the booster with mechanical arms. they for formed a controlled landing in the gulf of mexico. and it survived landing. donald trump was at the launch alongside space x c.e.o. elon musk. i think it matters if the global market. this is a major kind of american grocer, the american consumer story that's known for their kind of less expensive value oriented products. i'm talking about great value. that's their major brand. they have fuel station throughout the rest of the country. it's a big tell on the u.s. consume their the fact that their growth has been pick up.

ordinarilies that a good thing. but for wal-mart the history suggests that people tend to go to wal-mart when their disposable income feels squeezed. so this kind of same store boost may not be the best macro economic signal. i want to point out some of the key pieces which is they raised their outlook. holiday season, a big boost for. that back to school shopping. the demand story again that a lot of american consumers are indeed trading down that is crucial in terms of outlook story. but they said that transaction slowed. even though fewer people buying items, the average amount that they are spending at the checkout counter has actually increased. who's the one spending this money? it's 75% of those third quarter sales came from earners making over $100,000 a year. upper middle-class has been contributing to the wal-mart earnings which again really emphasizes this glad even if

higherrers the one that have more disposable income are looking to pinch a few more pennies. nevertheless good news for the corporate store, wal-mart action major dow and s&p component certainly an earnings consumer story that we've got our eye on coming up on the program the escalating tension between russia and ukraine, we're going to discuss with it the ambassador the e.u. an exclusive conversation. 6:40 a.m. in the u.k. 7:40 in brussels an berlin if you're joining us from europe. the u.s., russia, ♪ ♪ ♪ something has changed within me ♪ ♪ it's time to try defying gravity ♪ ♪ ♪

kriti: good morning, this is daybreak europe. president biden approves long-range missiles. we speak to the ambassador to the european union. standby for nvidia earnings. will it continue its ai fueled run? donald trump search for a treasury secretary continues. howard is out of the race. futures not following asia, green on the screen, euro stoxx 50 futures higher, ftse 100 is higher, momentum picking up,

let's get a quick check on markets. risk on sentiment, market lightly reflected. it's all about dollar-yen, even currency intervention. 155, higher, stronger i should say. also reflected in the swiss franc. breaking news, headlines out of ukraine, u.s. embassy issues a warning, closing their embassy.

potential air attack as of today, closing the embassy saying they received specific info about an attack according to their website. reuters says vladimir putin is commenting on territory, open to talks with trump, but will not cede territory. a little bit of a boost, something we keep our eyes on. leaders of the large economy at the g20 summit where divided, olaf scholz pushing a tougher

stance. providing anti-personnel landmines. >> we must push russia toward just peace. firm sanctions, it has been crucial to reduce our stability through oil sales. kriti: let's bring in all of her crook out of berlin. g20 and support the roads, not as cohesive as it was, what do you make of it? >> zelenskyy has been active, cognizant about time on the side

of putin with diminished support from the communique and last year, sharper relief, these lines are interesting about putin talking to trump, he considers the parts of ukraine as russian territory, the grounding point, what is it they can do? we heard some things from joseph biden, this is where the line stopped for the germans in lockstep with joseph biden throughout the war saying the

germans will deliver tanks. not the predominant view. listen to what one lawmaker told me. >> majority of parliament and government support tariffs as a consequence of the use of missiles to hit targets, military targets, one principal in this context was isolate in line with our allies, our position has changed.

>> putin said any attack by ukraine would not prompt but would justify nuclear retaliation. does that change your opinion? >> we need to be firm. one country was aggressive, claiming to acquire territory and conducting psychological warfare and sabotage. we need to accept firmness is respected.

they are testing our willingness to be firm. >> there you hear it from a german lawmaker, what is interesting is this may be one of the last items, they may vote in favor of missiles. kriti: around missiles how does it translate? expand on what this means. >> there is nuance, support for ukraine.

some say germany should deliver more missiles but some say that these parties are opposed to entanglement so while most are in favor olaf scholz says they will be there but not escalate. the question is will he be the candidate? a lot of questions, olaf scholz and boris, a lot more chatter about replacing their candidate. they are standing firm but

months is a long time. kriti: oliver, plenty on his plate, thank you out of berlin. one thing may get christ in, a bellwether for the ai boom if you're up at 10:00 today and. let's bring in winnie sue. walk us through when he sue, what is the game changer? winnie: all eyes are on nvidia and i was talking to hedge fund manager who said this is the most important event. more important than december cpi and it's not just the most

valuable company but also a bellwether for ai and economic health and we look at the perspective it the heaviest weight, the -- the -- biggest market worldwide and with that gains nvidia contributed a quarter of the gains so nvidia rising 200%. hyped up so much of the expectation of earnings delivery . with that high expectations, faith earnings beat, people are tuning in to the forward guidance if they can meet that insane demand quote unquote that nvidia mentioned and more

specifics. that would impact not just the u.s. but also the asian market. kriti: when he sue with the preview. thank you so much. the other piece comes in 30 minutes time, let's bring in and for preview. what's the game changer? anna: good morning. not going to be a lot of great news with the data. inflation falling and trend reversing, above 2% target driven by energy, update of the

price cap, so this will push on the headline measured. the bit i will be looking at is services, expecting inflation to remain unchanged at close to five percent, one key reason why they have been gradual and looking at data. inflation, disinflation will remain slow. one reason is the budget, business costs and that will keep the boe on a gradual rate path. kriti: anna and roddy at the edge of her seat for this juicy

that she just laid out. the russian war in ukraine escalates, 1000 days old. speaking to ukraine's ambassador to the european union. cease fire may be open, stick with us. this bloomberg. ♪

>> welcome back, i'm pretty grouped up. openness from vladimir putin when it comes to conflict, open to cease fire with trump.

given the long-range missiles to ukraine and pushback, joined with ukraine's ambassador. is this news to you? >> it just prove it was the right decision to provide missiles and we want the other countries which are capable to follow suit.

kriti: if vladimir putin is coming to the table post donald trump is this the right time to use missiles? ambassador: we are talking from the position of strength and it is happening so as soon ukraine could be capable to strike back you see what is happening in russia and also this putin's decision about changing the nuclear defense shows it works. if we talk to him from the position from strength we will have a conversation. kriti: there is the argument he

is not seating territory where there is a russian influence, where do you stand? >> not in negotiation right now and important thing is we are prepared and we need more we then, more air defense and as soon as it is happening so we will have better chance to have meaningful justice. kriti: let's talk about weapon delivery. biden signed off on landmines but you are getting very real resistance from european allies, germany. how confident are you europe will follow? >> i am sure you remember how it started from impossible, maybe

and finally we see tanks, f-16s and ammunition and it is important that the first step is made and when we pollution we can achieve what we need. kriti: a new commission expected the shark shortly. or start shortly. will discontinue? >> quite confident and the composition on portfolios like security defense gives us quite good signal that policy will

continue, ukraine will get support and we are getting. take for example the -- the -- the -- the 4 billion for ukraine in -- in -- in -- in the coming weeks, this will continue. kriti: there is pushback given that states are taking a direct approach. olaf scholz for example. is that of the trail? how do you view the phone call? >> i don't want to command about the substance. what is important is actions, policy. we hope that the policy will not change because germany supports ukraine a lot and they produce

in ukraine providing equipment, difficult so again we hope. kriti: no change in policy but change in action, a phone call was not on the table two years ago for one year ago or a couple weeks ago. on top of that germany is hesitating, are you sure about that in the context of a new german election? >> what is important is the message that is delivered and we hope the right message is

delivered and you are right, we need more equipment and it is unacceptable that we find western confidence in the russian missiles and we want germany and other countries to provide electronics and parts and equipment because we can increase our production, big industry needs support. kriti: congaree seems to be more vocal. what role does that play? >> indeed we -- we -- we managed to cooperate with the european union and, uh, uh, our colleagues find a way to solve

those complications, we are getting through. kriti: all right, vladimir -- excuse me, ukrainian ambassador joining the. as we get those headlines, not to mention the white house. stick with us, this bloomberg. ♪

>> a lot going on when it comes to geopolitics, ukraine, markets. nvidia and treasury secretary, chart on your screen matters, dollar on a tear. this weakness no matter where

you look, a function of the dollar story. if the bond story was driving this chart would suggest that has gone too far. is this the trump trade? garfield reynolds suggests yield premium does not supported. opening trade is next. anna edwards and guy johnson for the opening trade. this is bloomberg. ♪ myself, why does pilates exist in harlem? so i started my own studio. getting a brick and mortar in new york is not easy. chase ink has supported us from studio one to studio three.

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it's mine. you, ok? yeah, are you ok? we're fine. my serve. maybe we should stop. this pinewood pickleball champ stops for no one. we got our melons checked. she had a concussion. admitting i was wrong is worse than losing at pickleball. saving your brain is a definite win. don't mess with your melon. if you hit it, get it checked.

>> good morning, i'm a anna edwards. here is what you need to know. geopolitical